How the FTA Effects Beverage Shipping 6 Nov 2012.

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Presentation transcript:

How the FTA Effects Beverage Shipping 6 Nov 2012

JF Hillebrand: Global wine specialist freight forwarding company China

Overview New Zealand-China Free Trade Agreement (FTA) o Duty o How the FTA impacts shipping o How the FTA impacts documentation o Under the FTA, how you cope with shipping uncertainties o How the FTA impacts on supply chain arrangement ASEAN-Australia-New Zealand Free Trade Area (AANZFTA ) o AANZFTA Duty o Singapore hub How can you cope with FTA in terms of shipping

New Zealand-China FTA: Duty

New Zealand-China FTA: Duty Calculation Standard DUTY and TAX calculation: Duty: CIF X 14% Consumption: (CIF + Duty) x 10% = (CIF + Duty)/9 (1 - 10%) VAT: (CIF + Duty+ Consumption) x17% Total: CIF X 48.2% StandardNew Zealand Chile Duty14%0%4.20%2.80%1.40%0% VAT(Value Added Tax)17% Consumption10% CIFX48.2%CIF X30%CIFX35.46%CIFX33.64% CIFX31.82%CIF X30%

Will China Customs automatically grant preferential duty for NZ wine?

The importer/clearance broker needs to apply for preferential duty by providing all necessary paperwork. Import Clearance Procedure (example only)

How the FTA impacts beverage shipping Full Container Load (FCL) o Direct vessel o Indirect vessel, transshipment port o Non-Manipulation Certificate Less than Container Load (LCL) o Transshipment port o Non-Manipulation Certificate o Where the import clearance needs to be done

How the FTA impacts documentation Case study: Importer said to winery: “If you can’t get the docs right first time, we will stop buying product from you.” Don’t treat it as one country. Documentation requirements can vary from port to port and also from agent to agent.

Under the FTA, how you cope with shipping uncertainties? Uncertainty is an inherent feature of the shipping industry. The challenge is how you handle this uncertainty. Case Study: We booked a direct vessel to Ningbo, but the shipping line changed schedules as the vessel was phasing out and containers got transshipped over Hong Kong.

How the FTA impacts on supply chain arrangement Hong Kong Wine Hub Hong Kong, gateway storage and distribution facility to cater to the fast-growing Greater China wine market?

AANZFTA ASEAN-Australia-New Zealand Free Trade Area

AANZFTA-DUTY

Singapore Hub Singapore, gateway to South-east Asia?

Talk to an experienced freight forwarder who knows the requirements of the FTA, and can understand how shipping uncertainties impact on the FTA application. This will make your trade with China a less daunting task. How you can cope with the FTA in terms of shipping?